What is an HS code?
An HS code, short for Harmonized System code, is a standardised numerical classification used in international trade to identify goods. The first six digits are the same in every country that uses the system, covering over 200 nations worldwide. In the UK, the full commodity code has ten digits and is used on every import and export declaration to determine duty rates, VAT treatment, licensing requirements, and trade agreement eligibility.
If your first customs declaration is coming up and someone has asked you for an “HS code” or a “commodity code”, this article will make it clear exactly what that means, where to find one, and why it matters.
Getting your commodity code right is one of the most important things you will do in international trade. It determines how much duty you pay, whether your goods need a licence, and whether you can benefit from a preferential trade deal. A wrong code does not just cost you money on one shipment, it can trigger a demand for back-duty on every shipment you have made over the last three years.
The Harmonized System, usually called the HS, is a classification framework for goods in international trade. It was created by the World Customs Organization (WCO) and came into force in 1988.
Every physical good that crosses a border needs to be classified within this system. Customs authorities use that classification to apply the correct duty rate, check whether a licence is needed, and gather trade statistics.
The system is used by more than 200 countries. That means a product classified under a given HS code in the UK is classified under the same first six digits in the US, China, Germany, and almost everywhere else. The shared six-digit foundation is what makes international trade data comparable across borders.
The WCO reviews and updates the HS roughly every five years. The current edition is HS 2022. Countries then build their own national extensions on top of the first six digits.
The HS works in layers. Each layer adds more precision about what the product is.
Chapter (digits 1–2): The broadest level. There are 21 sections and 97 chapters, each covering a broad category of goods. Chapter 62, for example, covers articles of apparel and clothing accessories (not knitted or crocheted).
Heading (digits 3–4): Narrows the category further. Within Chapter 62, heading 6203 covers men’s suits, ensembles, jackets, blazers, trousers, and shorts.
Subheading (digits 5–6): The global standard stops here. The six-digit subheading is what every country that uses the HS system shares. Subheading 6203.42 covers men’s trousers and shorts, of cotton.
National subdivision (digits 7–10): Each country adds its own digits on top to reflect local tariff rates and policy. In the UK, these four extra digits make up the full ten-digit commodity code.
Here is how that breaks down for a real product, a pair of men’s cotton trousers:
| Level | Digits | Code | Meaning |
|---|---|---|---|
| Chapter | 1–2 | 62 | Articles of apparel, not knitted or crocheted |
| Heading | 1–4 | 6203 | Men’s suits, jackets, trousers, shorts |
| Subheading | 1–6 | 6203.42 | Men’s trousers and shorts, of cotton |
| UK commodity code | 1–10 | 6203.42.31.10 | Full UK-specific classification |
The dots in the code, such as 6203.42.31.10, are just formatting to help you read it. On official declarations and in the UK Trade Tariff, you will see the code written without dots: 6203423110.
These three terms get used interchangeably in everyday trade, and in the UK context they all refer to the same thing, the ten-digit code you use on customs declarations.
Here is the clearest way to think about it:
HS code is the international term. Strictly speaking it refers to the first six digits, the globally standardised portion. When people say “HS code” in a UK context, they often mean the full commodity code.
Commodity code is the standard UK term. This is the ten-digit number used on UK import and export declarations. It is the term used by HMRC and the UK Trade Tariff.
Tariff code is informal but widely used. It means the same thing as commodity code in most contexts.
CN code is the EU version. The Combined Nomenclature (CN) is the EU’s eight-digit classification. If you are importing into the EU, you use a CN code. EU codes and UK codes share the same first six digits, but they can diverge after that, especially since Brexit.
HTS code is the US term. The Harmonized Tariff Schedule (HTS) code is the ten-digit US equivalent. Again, the first six digits match the international HS.
If a supplier outside the UK gives you a six-digit HS code for a product, treat it as a starting point. You still need to identify the correct UK commodity code by finding the right national subdivision in the UK Trade Tariff.
Since Brexit, the UK maintains its own tariff schedule, the UK Global Trade Tariff, which is separate from the EU’s Combined Nomenclature.
A UK commodity code has ten digits. The breakdown works like this:
You use the ten-digit commodity code on UK Customs Declaration Service (CDS) import entries and on export declarations. Getting all ten digits right matters. The duty rate, VAT treatment, and any licensing requirements are tied to the full ten-digit code, not just the six-digit HS.
For exports, you may sometimes be asked to provide a code to customs authorities in the destination country. In that case, provide the six-digit HS subheading, the destination country will apply its own national subdivisions. You cannot use your ten-digit UK code on a foreign import entry.
The official tool is the UK Global Trade Tariff, maintained by HMRC. You can access it at trade-tariff.service.gov.uk.
Here is how to use it step by step:
Step 1: Go to the Trade Tariff tool. The homepage gives you two options: search by keyword or browse the tariff schedule. For most people, searching by keyword is quicker.
Step 2: Search for your product. Type a plain-English description of what you are classifying. Use specific terms, “men’s cotton trousers” rather than just “trousers.” The tool returns a list of possible commodity codes.
Step 3: Review the search results. The results show heading-level and subheading-level options. Read through them carefully. More than one result may seem relevant. Do not just pick the first one.
Step 4: Read the heading notes. Click through to the chapter or section notes. These legal notes define exactly what falls within each heading and what is excluded. They are binding. If the notes exclude your product from a heading you thought was right, you cannot use it.
Step 5: Select the correct ten-digit code. Once you have identified the right chapter, heading, and subheading, the tool will show you the full ten-digit commodity code, along with the applicable duty rate, VAT status, and any import controls.
Step 6: Check for restrictions or measures. The Trade Tariff shows any import licensing requirements, anti-dumping duties, safeguard measures, or preference rates that apply to the code. Review these before your goods ship.
If you are not confident, HMRC operates an Advance Tariff Ruling (ATR) service, previously called a Binding Tariff Information (BTI) ruling. You submit a ruling request describing your product and HMRC issues a formal classification decision. That ruling is legally binding on HMRC for three years and protects you if the classification is later disputed.
For complex products or high-volume shipments, many importers use a customs broker or freight forwarder who classifies goods as part of their service.
Using the wrong commodity code is not a minor paperwork error. The financial and legal consequences are real.
Underpaying duty. If you use a code with a lower duty rate than the correct one, you are underpaying. HMRC can audit your import declarations, typically for up to three years after the date of entry. If they find a systematic misclassification, they can issue a back-duty demand for every affected shipment across that period. That can easily run to tens of thousands of pounds for a busy importer.
Overpaying duty. If you use a code with a higher duty rate than the correct one, you are paying more than you need to. That money is gone unless you actively apply for a repayment, which requires you to identify the error and go through an administrative process.
Losing trade agreement preference. Many UK trade agreements provide reduced or zero duty rates, but only for goods classified under specific commodity codes. If your code is wrong, you may not be able to claim the preference you are entitled to, or you may claim it incorrectly, which creates a legal liability.
Triggering or missing licensing requirements. Some commodity codes require an import licence: for example, goods subject to CITES (Convention on International Trade in Endangered Species) controls, or products covered by SPS (Sanitary and Phytosanitary) rules. If you use the wrong code, you may fail to apply for a licence you needed, leading to goods being seized or refused entry at the border.
HMRC reassignment. HMRC has the power to reclassify your goods on audit. If they determine the correct code is different from the one you used, they can reassign the code retrospectively and issue demands for any additional duty owed.
Every UK commodity code carries a duty rate. This is known as the Most Favoured Nation (MFN) rate, it is the standard rate that applies unless a trade agreement provides a lower one.
Duty rates vary enormously by product. Some goods carry a zero MFN rate. Others attract rates of 5%, 12%, or in some cases over 20%. Agricultural goods often carry particularly high rates.
You calculate import duty by applying the duty rate to the customs value of the goods. Customs value is normally the transaction value, the price you paid for the goods, plus the cost of freight and insurance to the UK border. This is known as the CIF value (cost, insurance, freight).
So if you import goods with a CIF value of £10,000 and the duty rate is 6.5%, you owe £650 in import duty.
The UK Global Trade Tariff shows you the applicable duty rate for each commodity code, including any preferential rates under trade agreements. Always check both the MFN rate and whether a preferential rate is available before you finalise your landed cost calculations.
Import VAT is charged on most goods entering the UK. The rate is the standard UK VAT rate of 20%, but some goods are rated at 5% or are zero-rated.
The commodity code determines the VAT rate that applies to your import. Zero-rated goods include most food, children’s clothing, and printed books. The 5% reduced rate applies to goods such as domestic energy products and certain mobility aids.
Import VAT is calculated on the customs value plus the import duty. So if your goods have a customs value of £10,000, duty of £650, and a VAT rate of 20%, your import VAT is £(10,000 + 650) × 20% = £2,130.
Most VAT-registered UK businesses can reclaim import VAT through their VAT return using Postponed VAT Accounting (PVA). Under PVA, you account for import VAT on your VAT return rather than paying it at the point of entry, which is a major cash flow benefit. Non-VAT-registered businesses cannot reclaim import VAT and must treat it as a cost.
The Trade Tariff shows the VAT rate applicable to each commodity code under the UK measures tab.
The UK has trade agreements with a growing number of countries. Many of these agreements offer reduced or zero duty rates on qualifying goods, known as preferential tariff rates.
To claim a preferential rate, two things must be true. First, the goods must be classified under a commodity code that is included in the preference arrangement. Second, the goods must meet the rules of origin requirements set out in the agreement, they must genuinely originate in the partner country.
Rules of origin are defined at the commodity code level. Different codes have different rules: for example, some require that the product was wholly got in the partner country, while others allow a specified percentage of non-originating materials.
If you can claim preference, the duty saving can be major. On a £100,000 shipment of goods with a 12% MFN rate, a preferential zero rate saves you £12,000 in duty. Getting your commodity code right is so not just about compliance, it is about making sure you do not overpay when you are entitled to pay less.
The UK Trade Tariff shows all applicable preference rates for each commodity code, including which trade agreement they fall under and what proof of origin you need to present.
Some commodity codes trigger import licensing or control requirements. These exist to protect human health, animal welfare, plant health, the environment, or national security.
Common examples include:
CITES controls. Goods made from protected species, certain timbers, animal skins, ivory, or products derived from endangered animals or plants, require a CITES permit. The relevant commodity codes are flagged in the Trade Tariff.
SPS measures. Live animals, animal products, and certain plant products are subject to Sanitary and Phytosanitary controls. These goods must enter through a designated Border Control Post and require health certificates and pre-notification.
Dual-use goods. Some goods have both civilian and military applications, certain chemicals, electronics, or software. These may require an export licence from the Export Control Joint Unit (ECJU).
Anti-dumping and countervailing duties. Some commodity codes attract additional duties on imports from specific countries where goods are sold below cost or benefit from state subsidies.
If your commodity code is wrong and you fail to identify a licensing requirement, your goods can be detained at the border or refused entry. In some cases, non-compliance carries criminal penalties.
Always check the measures and controls tab in the UK Trade Tariff for your commodity code before your first shipment.
You also need a commodity code when you export goods from the UK. The code appears on the UK export declaration submitted through the UK Customs Declaration Service.
For exports, the relevant code is usually the eight-digit level for the destination country’s tariff schedule, but since the first six digits are shared, you can find the right subheading using the UK Trade Tariff and give your buyer the six-digit version to work with in their country.
Some exports require an export licence, depending on the commodity code and the destination. Dual-use goods, military items, and certain cultural goods all fall into this category. The UK Export Control Joint Unit (ECJU) manages export licensing.
Export statistics, including the value and volume of exports by commodity code, are used by HMRC, the Office for National Statistics, and government trade negotiators. Accurate classification contributes to the integrity of UK trade data, which is why HMRC takes misclassification seriously on both import and export declarations.
These are the errors that come up most often, especially with new shipping coordinators.
Using a supplier’s code without checking it. Suppliers often provide a commodity code on their invoice or packing list. That code may be correct for their home country, but it may not be the right UK commodity code, and it may be wrong altogether. Always verify it yourself using the UK Trade Tariff.
Using a six-digit code on a UK import entry. The UK requires the full ten-digit commodity code on CDS import declarations. A six-digit code will be rejected or cause delays.
Classifying by the material rather than the function. The HS has rules about whether a product is classified by what it is made of or what it does. Mixing these up leads to wrong chapters. For example, a plastic bag is not necessarily classified with plastics, the function and presentation matter.
Ignoring chapter and section notes. The legal notes at the front of each chapter define exactly what is included and excluded. Many people skip them. The notes are binding, if they exclude your product from a heading, that heading is not available to you regardless of what the product looks like.
Using the same code for years without reviewing it. Commodity codes change. The WCO updates the HS every five years, and the UK can update its national subdivisions independently. A code that was correct three years ago may have been superseded. Check your codes against the current version of the UK Trade Tariff at least annually.
Using a competitor’s declared code. Import data is available publicly. Some importers copy commodity codes they see in competitor shipment data. This is risky, the competitor may be wrong, or their product may not be identical to yours.
Before Brexit, the UK used the EU’s Combined Nomenclature (CN), an eight-digit system. After leaving the EU on 1 January 2021, the UK introduced its own ten-digit commodity code structure, maintained by HMRC under the UK Global Trade Tariff.
For most goods, UK commodity codes remain closely aligned with the EU’s CN. The first six digits are identical, they are fixed by the international HS. But at the seven, eight, nine, and ten digit levels, the UK and EU can and do diverge.
This divergence has grown gradually. When you are dealing with goods that also move between the UK and the EU, you need two separate codes, the UK commodity code for UK declarations, and the EU CN or TARIC code for EU declarations. Do not assume they are the same at the national level.
The UK also introduced its own tariff schedule, the UK Global Tariff, with duty rates that are not always identical to the EU’s Common External Tariff. In many cases they are the same or lower, but differences exist. Always check the UK rate specifically rather than relying on an EU rate you have seen elsewhere.
HMRC has made periodic updates to the UK commodity code list since Brexit. Businesses that set up their customs procedures in 2021 and have not revisited their codes since may be working with outdated classifications.
Here is how a single incorrect commodity code cost a UK importer a major sum.
A small clothing retailer was importing men’s cotton trousers from a supplier in Bangladesh. The supplier’s invoices showed a commodity code of 6203.41.90.00, men’s trousers of wool or fine animal hair.
The actual goods were cotton trousers, which fall under 6203.42.31.10.
The duty rate difference was small on any individual shipment. But the retailer was importing regularly over two years, and the wrong code also meant they were not claiming the Generalised Scheme of Preferences (GSP) zero duty rate available on cotton trousers from Bangladesh, which is available under 6203.42, but which requires the correct classification to claim.
When a customs broker reviewed their declarations ahead of an import audit, they identified the misclassification. Correcting it meant:
The total refund recovered was over £8,000. Had they been on the wrong side, underpaying duty rather than overpaying, the demand from HMRC could have been of a similar magnitude.
The lesson is straightforward. Verify your commodity codes before your first shipment. Do not rely on what a supplier gives you. And review your codes when products change.
What is the difference between an HS code and a commodity code?
In the UK context, people use both terms to mean the same thing, the ten-digit number on a UK customs declaration. Strictly speaking, the HS code refers to the internationally standardised six-digit portion, while the commodity code is the full ten-digit UK version. On day-to-day declarations you need all ten digits.
How many digits does a UK commodity code have?
A UK commodity code has ten digits. The first six are the internationally standardised HS subheading. The next two are the UK tariff subheading. The final two are the UK national subdivision. All ten digits are required on UK CDS import declarations.
Can I look up HS codes for free?
Yes. The UK Trade Tariff at trade-tariff.service.gov.uk is free to use and maintained by HMRC. It is the authoritative source for UK commodity codes and includes applicable duty rates, VAT rates, and any import controls.
What happens if I use the wrong commodity code?
You may pay too much or too little duty. HMRC can audit your declarations for up to three years and issue back-duty demands if they find a misclassification. You may also miss licensing requirements, fail to claim preferential rates you are entitled to, or incorrectly claim preferences you are not entitled to.
Do I need a commodity code for exports as well as imports?
Yes. You need a commodity code on UK export declarations. The code is used for export licensing checks and for UK trade statistics. For exports, you typically work to the eight or ten digit level for the UK declaration and provide your buyer with the six-digit HS subheading for their import entry.
Can my supplier give me the commodity code?
Your supplier may suggest a code, and it is worth asking. But you, as the importer, are legally responsible for the accuracy of your import declaration. The supplier’s code may be correct for their country but not exactly right for the UK, or it may be wrong altogether. Always verify using the UK Trade Tariff before using a code on your CDS entry.
What is an Advance Tariff Ruling and should I get one?
An Advance Tariff Ruling (ATR) is a formal decision from HMRC on how a specific product should be classified. You submit an application with a full description and supporting information. HMRC issues a binding ruling that protects you from reclassification for three years. It is worth getting for high-volume products, high-value goods, or anything where classification is genuinely ambiguous.
How often do commodity codes change?
The WCO updates the HS roughly every five years, the most recent update was in 2022. The UK can update its national subdivisions more frequently. HMRC publishes changes to the UK Trade Tariff when they occur. If you have been using the same codes for more than a year or two, it is good practice to verify they are still current.
This article is part of a learning path — return to explore more topics.
Keep reading
Your first week in a shipping role and someone sends you a status update: “ATD confirmed, ETA POD revised, vessel in CY, MBL released.” You
What is customs clearance? Customs clearance is the official process of declaring goods to HMRC when they cross the UK border, paying any applicable import
What is EXW? EXW (Ex Works) is an Incoterm where the seller’s only obligation is to make the goods available at their own premises, their
If you are new to shipping and you have just discovered that your goods might be classified as dangerous, do not panic. This article explains
Explore modern logistics services, customs compliance and supply chain careers. Learn how transport and trade operations connect. See more here
What is landed cost? Landed cost is the total cost of getting a product from a supplier’s factory to your door in the UK. It